According to reports, the debt ridden carrier Mexicana, and all of its domestic subsidiaries, has now suspended flights as of midnight last Friday. They have halted all operations as they now seek to restructure their costs. Although this is going to mess up some peoples’ travel plans, it is necessary for the airline to get back on its feet.

Mexicana, which is the country’s biggest airline, is now forced to shutdown. Mostly this is just due to the fact that it no longer has enough money to keep flying people. However, the company is in the process of restructuring. The company is not able to give any specific details on its financial situation right now or what kind of restructuring will be going on.

The airline recently filed for bankruptcy protection both in the United States and in Mexico. The airline later stopped selling tickets and then suspended some of its flights. Executives of the company said that this month the company needed an infusion of about $100 million to keep flying.

On August 21 a group of Mexican investors, which is being called Tenedora K, announced that they had bought about 95 percent of the company. Then this past Friday, Mexicana said in a statement that the current management of the company received the airline in a state of technical bankruptcy.

In the court filings, Mexicana said that it was badly hit by the swine flu outbreak that happened last year. It scared away many travelers for months. However, it was also hit by the global economic slowdown. The airline even said that high jet fuel prices and labour costs continued to add to its financial troubles.